Say you buy 10 shares of xyz at $2 = $20 total
It goes up to $3, so you sell 4 shares at $3 = $12 total and later it goes down so you rebuy 5 shares at $2.7 = $13.5 total
Did you lose money? When i try to track a scenario like this my average goes up but i see it as i got one extra share for cheaper by reinvesting profits
Bc you end up spending 20 – 12 + 13.5 = 21.5
Got back 12 then spent 13.5 so 1.5 more to end up with 1 extra share
You end up with 11 shares that would have costed 22 originally
But your average goes up from 2 to 2.318 ?
I'm having trouble getting this to click and feel like i just lost money somehow if i track it in my app framed as i got 1 extra share for cheaper the average only goes up a little bit vs if i track the sell and rebuy my average goes up a lot
I have more invested at a worse average but i didnt spend much extra is that correct?
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